A group of Jamberoo residents has been angered by comments their township is "dying" and can only be saved by a new development on its outskirts.
Kiama councillors last week gave the green light to a rezoning that could allow 62 new homes to be developed off Wyalla Road, including a development comprising 30 Torrens title housing lots for over 55s and 22 detached residential housing lots.
A development application for the project is still to be lodged.
The residents have called on Kiama Municipal Council to host a public hearing into the future development of Jamberoo, fearing the council's decision will see further rezonings take place outside long-established boundaries.
Some councillors have argued the new development would save Jamberoo, pointing to a decline in numbers at the school, struggling businesses and lack of a doctor and petrol station.
Resident Lynn Brennan rejected that.
"The town still has children, but many parents are choosing to send their children to private schools outside Jamberoo," she said.
"We lost our doctor not because he didn't have enough patients but because he had too many.
"They said we lost our garage, but we haven't lost our garage, it is a thriving business. It doesn't sell petrol any more because the tanks need replacing which would cost a fortune, but look at the size of our town compared to Kiama, they only have one petrol station.
"There are plenty of service clubs in the town and on weekends there are all kinds of sporting activities going on in Jamberoo ... sometimes my children have to make an appointment to see me, I am that busy.
"The town is unique, they should leave it as it is."
Boyd Hore said the Jamberoo Pub was always full on Saturday nights and Sundays.
"Why would they be building a bigger IGA than the one that burnt down?" he asked.
Reg Curnow said a public hearing should have been held during the rezoning process, and questioned why the public exhibition period took place over the Christmas and New Year period.
"The council needs to listen to the people ... it is not too late to rescind the motion," he said.